The Piracy Conversation: The Good and The Bad

Anyone heard of this beautiful new piece of software called “Popcorn Time”. There are no registrations, or restrictions on content. It looks like Netflix and it is free. The user just presses play. It’s easy to use and its design is elegant.

Did you also know that “Popcorn Time” was designed by programmers in Argentina, where the movie “There’s Something About Mary” is still classed as a new release by the movie industries in that country.

So of course, the “Popcorn Time” development team created an innovative piece of software to meet a service problem for their country because the content industries failed to. There is a reason why South America has the highest rates of copyright infringement when it comes to music. Access to content is not serviced in an affordable way.

Of course the creators shut the service down when their “experiment” put them at the doors of legal threats around piracy and copyright infringement.

However the saga did not end. Remember that the internet is a copy system. So of course, the source code was made available and now other programmers took over the open-source code and made it available to people once again.

Hollywood is not up against people who want to be millionaires. They are up against educated people who want to create something new to solve a problem that they have in their home country. If the developers followed the “laws” then “Popcorn Time” would never exist. The restrictions around copyright and patents would have killed it in the start-up phase.

To compete, Hollywood needs to employ the best and the best don’t want to work for companies who see innovation as a way to prop up profits from the past. They want to work for companies who see innovation as a way to stay ahead of other companies.

So the best minds go into business for themselves, or for companies that meet their expectations or they just stay in their bedroom and innovate without the law in mind.

We all know that piracy is wrong, however it opens up the conversation to the larger issue.

Let’s put into context what piracy/copyright infringement has done.

THE BAD

It made the RIAA spend millions suing music customers.

THE GOOD

While Apple started to see a market here and began to turn those Napster digital natives into iTunes buyers by making it easy to grab the latest music, anywhere, at any time.

THE BAD

It made the RIAA/Record Labels sue/kill off thousands of technologies that would have given them better profits if they only had the foresight to innovate instead of legislate. Think of Napster, Limewire, mp3tunes and many others.

THE GOOD

With the rise of Spotify/Pandora, the music piracy problem is declining and the labels are now cashed up

THE BAD

Artists are not seeing a lot of it.

THE GOOD

Piracy opened the door for format shifting.

THE BAD

The music industry introduced DRM and the ones that got hurt by it were the ones that actually paid money to purchase the product while the pirates bathed in DRM free mp3’s.

THE GOOD

YouTube piracy has also led to another source of income. It’s actually official now that record labels make more money from fan-made videos uploaded to YouTube than they do from their official music videos. Check it out on the link at the end of the post. And this is coming from Universal Music Group.

THE BAD

And still the labels send out billions of takedowns to these kinds of videos on YouTube because they still see fan made videos as a breach of copyright.

THE GOOD

However, YouTube has innovated even more and now the label is notified when a user uploads copyrighted content. The label can then choose to place advertising before the video, making royalties from the views.

THE BAD

And the labels/RIAA still scream that Google (the owner of YouTube) isn’t doing enough to protect their profits.

THE GOOD

YouTube fan made pirated videos is a massive growth area alright.

THE BAD

How much is the artist seeing? Again a lot of power in the hands of the label and a lot of money coming into the label accounts for work done by fans this time around. These monies should be at least 70% to the artist.

THE GOOD

Basically, piracy has also highlighted how broken Copyright is. The pure essence of Copyright has been hijacked by the Corporations that now hold the majority of copyrights. To further show how broken it is, Sir Tim Berners-Lee (one of the main creators of the World Wide Web) has called for a copyright reform passage to be included in any new legislation written as part of the “Web We Want” initiative. He further stated that the current law is purely there to protect the interests of movie producers, not the public at large.

THE BAD

The labels see piracy as a case for even more draconian copyright legislation and even longer terms post death.

THE GOOD

Piracy has opened up more distribution channels

THE BAD

However the “Popcorn Time” software has shown that the current movie industry is still employing the old distribution model.

THE GOOD

However, Netflix has shown the movie industry that fans of movies and TV want content on demand/twenty-four hours a day for a fair price. And Popcorn Time has shown that they want top-tier content.

THE BAD

Google is still blamed for not doing enough.

THE GOOD

Because the future is in streaming for music and video.

THE BAD

However the RIAA and the MPAA are doing their best to kill it. Pandora had to raise their fees to cover the cost of licensing the songs. Plus they also had an expensive lawsuit in relation to the royalty rate paid on a radio stream. While the movie studios still lock content away.

THE GOOD

Legacy analog revenue sources get replaced by digital revenue sources. It’s a transition right now. The transition isn’t happening fast enough for the labels however it is their fault in the end. As their need to control has more or less slowed the transition process down.

THE BAD

It is a shame that the RIAA and the record labels focus on the shortfalls between analog and digital revenues at this point in time, instead of looking at the bigger picture.